Himatsingka Motor Works Ltd. कंपली की लेखा नीति

Mar 31, 2011

A. The Books of Account are maintained on Accrual Basis and according to the Principles of Double Entry System. As per advance calculation, accrual of Hire Purchase charges are included in the Hire Purchase Stock in advance and such accrued income for the relevant year are taken to the Profit & L.oss Account. As regards Asset classification, the quantum of Non-performing Asset is Rs.40.34.1 12'- for which necessary provision Tor Rs. 19,49,639/- has been made. Also provision has been made for Income De- recognition amounting to Rs.8,07,629/-. Thus total provision as per prudential norms for NBFC have been made for Rs.27,57,268/-during the year. Provision for diminution in the value of Investment is not made during the year as the same is not considered permanent nature by the Management.

b. Valuation of Inventories is made at cost.

c. Gratuity paid on actual basis. Liability of the Company of Rs. 9,00,425/-(Rs. 8,16,217/-) in respect of future payment has not been provided for. Due to non-provision of liability profit for the year is higher to that extent.

d. All Assets & liabilities are valued at historical cost unless otherwise stated.

e. Un provided contingent liabilities if any are disclosed in the accounts by way of notes.

f. The Company has provided depreciation during the year on written down value method at the rates prescribed in Schedule XIV of the Companies Act 1956 as amended from time to time.

g. Investments are capitalized at cost.

h. Deterred Tax is recognized, subject to the consideration of prudence, on timing differences, being the difference etvveen taxable incomes and accounting income that originate in one period and are capable of reversal in one or more ubsequent periods. Deferred tax assets, including assets arising from loss carried forward, are not recognized unless here is a virtual certainty that sufficient future taxable income will be available against which such deferred tax asset :an be realized

i. During the year Rs. 2.60.000/- has been transferred to RBI Reserve Fund in accordance with 45 IC of RBI Act 1984.